July 16 (Bloomberg) -- Leap Wireless International Inc.,
which sells the Cricket prepaid mobile-phone service, was sued
by a shareholder contending the company is undervalued in a
$1.2 billion buyout offer from AT&T Inc.

Leap directors set the $15-a-share price in bad faith
through an unfair process, the Booth Family Trust said in a
Delaware Chancery Court lawsuit made public today.

The transaction, involving an 88 percent premium at the
time, “fails to maximize shareholder value” considering
“Leap’s prospects for future growth,” Booth lawyers wrote in
court papers.

Leap, based in San Diego, and AT&T, based in Dallas, said
in a July 12 statement that they would combine to expand service
for AT&T, the No. 2 U.S. wireless carrier.

A Leap spokesman, Greg Lund, said the company had no
comment on the lawsuit.